Agrivoltaic / Mixed Use: Solar panels for agriculture

Agrivoltaics: producing food and energy on the same agricultural land

Agrivoltaics means generating solar power and farming the same ground at once, whether that is sheep grazing beneath elevated panels, soft fruit and leafy crops under translucent arrays, or pollinator habitat managed around ground-mount rows. For agriculture as a whole it is the most ambitious application of solar, because it answers the food versus energy objection head on: the land keeps producing while it also generates, so no productive ground is taken out of food. That dual-use story is increasingly valued by policymakers and by supermarket buyers who do not want to be seen sourcing from farms that have swapped crops for panels. For larger holdings with marginal or underused land, agrivoltaics is the most transformative solar option for farm income, and across UK agriculture it is the area where competitor content is thinnest and clear, grounded guidance is hardest to find. We try to be a definitive resource on it rather than repeating generalities.

There is policy interest in it. Defra and the NFU are engaged with dual-use solar, but the Sustainable Farming Incentive does not pay for solar panels (it reopened as SFI26 in 2026, paying for land-management actions only); land under panels can sometimes sit alongside separate environmental actions, subject to scheme rules, so check with the RPA. For an agricultural business thinking a generation ahead, dual land use is a serious succession and diversification tool rather than a passing trend. Sheep grazing under elevated panels is already well established in the UK and is the simplest dual-use arrangement to deliver; crop agrivoltaics, with shade-tolerant crops such as leafy greens and soft fruit under translucent panels, is newer but showing promising trial results.

The dual-use narrative carries real commercial weight with supermarket buyers. The food versus energy debate has made some retailers wary of farmland given over wholesale to ground-mount solar, but agrivoltaics sidesteps that objection entirely because the land continues to produce food while it generates. For a holding that supplies the multiples, being able to show that a renewable scheme has not displaced food production is a stronger position than a conventional solar farm, and it aligns with the way retailers are framing their own land-use and net-zero commitments. That is part of why the policy direction, from Defra through to the NFU, has shifted towards encouraging genuine dual use rather than treating all ground-mount the same.

What a typical scheme looks like and how it is sized

Agrivoltaic schemes are large, generally 500 kW to 10 MW and beyond, roughly 920 to 18,400 plus panels on ground-mount structures designed to allow grazing or cultivation underneath. Generation varies widely with layout, panel height and the farming use below, so a good installer or developer models each scheme individually from the site rather than quoting a standard yield. Sheep grazing under elevated panels is the most established approach in the UK and the simplest to deliver; crop agrivoltaics with translucent panels is newer, and a trial area before committing the whole site is sensible so the agronomic effect is proven for your specific crop. Sizing is a balance between generation, the farming use you intend to keep below the array, and the grid capacity available at the connection point, and the right design is the one that protects the farming use while making the generation worthwhile.

Because every site differs in soil, aspect, the intended crop or grazing and the grid position, there is no off-the-shelf agrivoltaic system. Panel height, row spacing and the degree of translucency all change both the generation and the conditions for whatever grows or grazes beneath, so the design is an exercise in balancing two outputs at once. For grazing schemes the array is elevated to allow sheep underneath and the layout protects access; for crop schemes the spacing and translucency are tuned to the light the crop needs. Ask the installer or developer to model the scheme from your land rather than drop a standard layout onto it, because a poorly matched agrivoltaic design can compromise the farming use it is meant to protect.

Grid capacity is the single biggest practical constraint on a scheme of this size. Multi-megawatt arrays need a substantial connection, and rural networks are frequently short of spare capacity, so a connection study early in the process is not optional: it shows what the network can actually take before any money is spent on detailed design. In some cases the available capacity shapes the size of the scheme, and occasionally it means phasing the project or revisiting the layout. A good installer or developer submits the G99 application and commissions the connection study at the very start, in parallel with the planning groundwork, precisely so the grid position is known before the design is fixed rather than emerging as a costly surprise later.

Costs, payback and tax relief

Indicative capital costs start around £325,000 to £450,000 for 500 kW (installer and industry guide prices for rooftop systems, ex VAT; a 1 to 5 MW farm ground-mount usually costs more per kW than utility schemes) and reach roughly £5 million to £8 million for 10 MW, based on the £526 to £789 per kWp that Arup, for DESNZ in July 2025, put on utility ground-mount above 5 MW (2023 prices, excluding land). There is no official payback figure: an owned array at this scale exports most of its output, so the return depends on the export or PPA price you secure. Many farms instead lease the land to a developer who funds and operates the array and pays rent, typically well above arable rental value, while the farm continues to graze or crop beneath. Either way the land earns twice. Ownership can draw on the 100% Annual Investment Allowance for qualifying plant within the annual cap, and the Smart Export Guarantee provides income on exported units. Where you lease rather than own, the developer carries all the capital and operational risk and you take a long-term rental income instead. Our cost guide compares the ownership and lease routes side by side.

For most farms considering agrivoltaics, the lease route is the natural starting point because the capital required to own a multi-megawatt scheme is substantial. A lease typically pays a rent above arable rental value, runs for a long term, and leaves the developer responsible for building, operating and maintaining the array, while you continue to farm beneath it. Ownership delivers more value where the farm has both the capital and strong on-site demand, but at agrivoltaic scale the generation usually far exceeds on-site use, which is why the lease model is so common. This guide sets out both routes so the choice rests on your appetite for capital and risk; ask any installer or developer to model both for your land.

Funding routes in detail

For an owned agrivoltaic array, solar is special-rate plant: the 100% Annual Investment Allowance relieves qualifying spend in full in year one up to £1m a year, and above that companies can claim the 50% special-rate first-year allowance with the balance going into the 6% special-rate pool. Solar does not qualify for full expensing. The Smart Export Guarantee provides ongoing export income for systems up to 5 MW, with MCS certification needed up to 50 kW and Ofgem ROO-FIT accreditation above that; export rates for businesses vary roughly 3p to 15p per kWh. The Sustainable Farming Incentive does not pay for solar panels (it reopened as SFI26 in 2026, paying for land-management actions only), though land under panels can sometimes sit alongside separate environmental actions, subject to scheme rules, so check with the RPA. Farms in Wales, Scotland and Northern Ireland should check current devolved schemes, none of which pays for solar panels at the time of writing.

Compliance and sector considerations

Agrivoltaic ground-mount schemes should be treated as needing full planning permission, and larger schemes may need Environmental Impact Assessment screening by the local planning authority. Because these are visible, large projects, early engagement with the local authority, the NFU and the surrounding community matters, and a well-evidenced dual-use case carries real weight at planning, because keeping the land in food production is exactly what addresses the most common objection. A G99 grid application is required, and grid capacity is the usual constraint on rural networks, so a connection study early in the process is essential before final sizing. Tenant farmers need landlord consent for the change of land use; most institutional rural landlords operate standard tenant agreements, while private landlords may need a lease addendum, so take legal advice. The land should remain in agricultural use throughout, which is central to the planning case, and a good scheme design keeps it that way.

What a good installer should do on this kind of project

An agrivoltaic scheme is as much a planning and grid exercise as an engineering one, so a good installer or developer runs the connection study and the planning groundwork in parallel with the technical design rather than in sequence, which keeps the overall timeline as tight as a capacity-constrained network allows. Ask them to model the scheme individually from your land, balancing generation against the grazing or cropping you want to keep below the array, and where crop agrivoltaics is the goal, to propose a trial area with agronomic input before scaling. The G99 grid application should go in early, and the project should be structured so the land stays in agricultural use. For tenanted land, expect the developer to work through landlord consent with you, and take your own legal advice on any lease addendum. Whether you own or lease, ask for both routes to be modelled, and check what workmanship warranty and insurance the installer offers.

An illustrative example

As an illustrative example based on typical UK schemes figures, not a real farm or project, a family farm with marginal pasture enters a 25-year lease with a UK developer for an elevated ground-mount array of around 1.8 MW, roughly 3,300 panels, with sheep grazing year-round beneath. The base rent sits near 1,000 pounds per acre per year, index-linked, at the top of the 800 to 1,000 pounds per acre range developers reported to Arup for DESNZ in 2025, and the land stays in agricultural use throughout. The figures are illustrative only and depend on your land, grid position and the developer terms available in your region; ask any developer to model your own options before anything is signed, and never treat a worked example as a guaranteed outcome for a different holding.

Agrivoltaics is still the least understood corner of agricultural solar, and the right scheme depends entirely on your land, your grid position and what you want to keep farming beneath the array, so the best next step is a conversation grounded in your own site rather than a generic figure. For rooftop-led options on the same holding, see arable solar, or horticulture solar for crop-under-glass approaches. To weigh ownership against leasing, read the cost guide and the grants and funding page, then request a free quote or read the agricultural solar FAQs.